The OECD warns that the coronavirus has already exceeded its worst expectations and calls for a Marshall plan

He had calculated that he would subtract half of world growth this year, but that forecast has already been exceeded, warns Angel Gurra


OECD Secretary General Angel Gurra with Vice President for Economic Affairs Nadia Calvio.
REUTERS

The OECD warns that the impact of the coronavirus in the world isovercoming their worst economic forecastsand stresses that a coordinated effort by governments and central banks to overcome the crisis is urgent.

Earlier this month, at the launch of its interim forecasts, it had advanced that, according to its most adverse hypothesis, the coronavirus couldhalve the growth of the world economyin 2020 and place it at 1.5%, causing a recession in economies such as Europe or Japan.

“Now it seems thatwe have already advanced much furtherof the most severe scenario foreseen then, “said the secretary general of the Organization for Economic Cooperation and Development (OECD),Angel Gurra, in a new digital platform launched last night by your organization to group data and response policies.

In his opinion, it is required“a level of ambition similar to that ofMarshall plan, created by the OECD, and a vision similar to that of the New Deal, but now worldwide. “

Gurra stressed that this pandemic constitutes the third great economic, financial and social “shock” of the 21st century, after the attacks of September 11, 2001 and the global financial crisis of 2008.

Among its effects, the suspension of production in the affected countries, with collateral damage in the global supply chains, and a strong fall in consumption that joins the collapse in confidence.

The representative of the so-called “club of the rich countries” warned that although the strict measures that are being applied are essential to contain the virus, they push economies to “an unprecedented state of deep freezing, from which recovery will not be direct nor automatic “

The World Health Organization (WHO) announced this Friday that there are more than210,000 cases of COVID-19worldwide, while deaths have crossed the 9,000 barrier, according to the Efe agency.

Gurra stressed that in addition to acting to minimize the loss of life, a coordinated effort against the “great economic crisis” unleashed is also a priority, which will continue even when the worst health problem has passed.

The OECD Secretary General held recent statements such as the G7, which on Monday pledged to“do whatever it takes”through “close cooperation” to curb the economic and health crisis, but pointed out that it is insufficient.

Gurra urged support for healthcare staff and for healthcare regulatory agencies to work together to remove the bureaucratic hurdles holding back the development and delivery of vaccines and treatments, even for uninsured patients.

The OECD representative also asked governmentsreduce the requirements to access unemployment compensation, and warned central banks that a joint approach to monitoring and diagnosing rising tensions is better than “loose and inconsistent responses.”

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